Question

How does "borrowing" shape the world we live in?

Answer 1

Borrowing has made the current world more materialistic.People now purchase more than before due to the option to borrow. They buy more than their capacity to pay which has now resulted in a more materialistic world.

Borrowing causes people to overspend. This has also resulted in greater mental stress and burden of interest payments upon the people. Most of the times people are unable to manage their liabilities and finances. Banks are also having huge lendings which creates a huge risk. Various banks are at higher risk since they lend to people with lesser credibility.